us for two amazing years. many more to come. we'll be right back here tomorrow. the special report is next. a key blair in the scrubbing of the benghazi talking points gives her side of the story on capitol hill. this is "special report." good evening. i'm bret baier. she has worked for presidents clinton, bush 43, and obama, served as ambassador to nato and to dick cheney. then came benghazi. many questions wherever victoria new land's ascent through washington would be derailed through the infamous talking points on the benghazi attacks.

as chief correspondent talks today we've got clue as to whether victoria's star will continue to rise. >> i was not a policy role in this job. >> facing disjointed questioning on the gop senators, former state department spokes person victoria nuland nominated to become an assistant secretary of state defended her role on the new infamous talking points of benghazi. >> at no point was i doing that. i did not make any edits as i say. >> in may the obama administration released 100 pages. they labored through 12 versions of the talking points that guided u.n. ambassador susan rice through the talking shows. that's when she pressed the false narrative that benghazi was not a terrorist but a protest gone awry. she pushed her colleagues to strike all references to the

involve md of al qaeda-linked terrorists. these revisions don't resolve all meese issued. they are consulting with national security staff. >> can you just tell me who that building leadership was? who you're referring to there? >> the only person that i consulted with that night was my regular reporting channel. >> and that person is? >> at the time, that was jake sullivan. >> sullivan at the time was deputy chief of staff to then secretary of state clinton. rupp senator rand paul of kentucky sought in vain for evidence to support the allegation that cia personnel in benghazi were covertly running weapons to the syrian rebel. >> there are many of us who believe it had to do with an arm strike that was going out and perhaps people were unhappy about arms being taken from one group too another and sent to another that may have incited the rioting and terrorist attack. >> senator, i would be delighted

to talk to you about the relationship between the state department and the cia in a separate setting, if that's helpful. >> newland said she never discussed the talking opponents with secretary clinton but then nuland did talk about the statements on benghazi. that mirrors the language that ben rhodes of the white house staff used in the e-mail that he sent to nuland, bret, on the talking points. >> thank you. we have been detailing the various speed bumps for the president's health care law the past few days and weeks, so what are all the delays and problems really costing you? white house correspondent wendell goler look at it. >> reporter: it will wind up costing the government money because those companies that don't provide insurance next year won't have to pay a penalty

for it. >> well, the congressional budget office has previously said the poor mandate would raise $10 million in revenue in 2014. that money is obviously gone by the wayside. >> reporter: they're asking if it will raise the cost of the affordable care act but the cbo hasn't said yes. in the long-term obama care will save money. >> this transition policy does not change the fact that the affordable care act will reduce the deficit by over $100 billion over the next ten years. this is more than fully paid for. >> reporter: at the white house the officials say that the claim that it raises the cot of the law is a sabotage effort. >> the republican house that's driving the narrative are not concerned about a delay and the law they want to impose. they want to kill the bill. >> reporter: jay carney says if the republicans wanted to fix the obama care bill they would find alternatives.

what's driving them to do it is it's not working. >> i support that. we're talking about perm neblt delay. we'd like to see the same thing delayed for everybody. >> reporter: others agree with thune but there's a hard argument on how it is. >> the point is the mandate was not relay. certain reporting by businesses that could be perceived as ho r onerous. >> reporter: it contains no warning about not injuring workers. it say, quote, during this 2014 transition period, we strongly encourage employers to maintain or expand health coverage. part of the reason for the delay is finding a way to determine whether the insurance they provide meets the standards of the affordable care act.

>> wendell goler on the white house lawn. thank you. university claims the law violatesry religious beliefs. they tell fox news the school will appeal to the u.s. supreme court. house speaker john boehner says the vast majority of his gop colleagues believe they need to deal with imdwrags reform, but hi says they will do it in part starting with border security, not in the sweeping form of the senate bill. well, here's some reaction from the senate. >> our message to our colleagues in the house is we are ready to negotiate, talk, sit down with you and bring this issue to a conclusion that we all agree has to be addressed. >> to say that this is just like the president's health care bill, nothing could be further from the truth. this is just what america wants us to do.

work together in a bipartisan way to move forward. >> the judge in the george zimmerman murder trial will allow injuries to consider convicting him of a lesser charge of manslaughter. it's a huge step and something that they feel has failed to prove their murder case. >> why does this defendant get out of the car if he thinks trayvon martin is a threat to him. why? why? because he's got a gun. he gets the equalizer. he's going to take care of him. hi's a wannabe cop. >> reporter: 15 months to the day when george zimmerman was charged with second-degree murder for killing trayvon martin, he urged the jury to convict the neighborhood watchman. >> he profiled him as a criminal. he assumed certain things, that

trayvon martin was up to no good. >> reporter: the day began with a major setback for zimmerman. the judge will allow the jury to consider not only convicted him of second degree murder which could still send zimmerman to prison for years. in february of last year, martin pout skittles and a fruit drink at a 7-eleven and then walked to his dad's and girlfriend's house. within an hour he was dead. he was beaten on the walk way. >> zimmerman's attorney exploded the morning as they tried to get the jury to consider the lesser charge of felony third-degree murder arguing martin's age kwal fighted for child abuse. >> just when i thought this case couldn't get any more bizarre, the state is seeking third-degree murder based on child abuse? is the court going to give any

more consideration? >> now it's the defense's turn. expect those to be three hours longer and far different than the version of events that you heard today after the short state rebuttal by prosecutors. >> phil keating live in sanford, florida. thank you. a little known agency called the community relations service is supposed to be a peacemaker to local conflicts of a race. the judicial watch says its workers crossed the line, advocating against zimmerman. a justice department official says the unit was simply trying to reduce tensions. meanwhile the former police chief in sanford florida told cnn last night he was fired because he did not want to arrest zimgerman. pro-life advocates in maryland are up in arms about a

local abortion provider and they want lawmakers to take action. >> reporter: this video taking by pro-life protesters tuesday proposes to show a late-term. car hart allegedly by her side in the purple shirt. fox new has been unable to authenticate it. a pro-life group gathered outside the maryland clinic today which was closed. >> maryland, do your job. protect the women of your state, immediately suspend leroy car hart's license. >> car hart, one of the few doctors who performs late-term abortions is a lightning rod for controversy. >> so i'll have a dead baby in me?

>> yefor three days? >> will it start to decay? >> like putting meat in a crock-pot. >> reporter: arsonists allegedly set fire to his home and barn killing 17 horses. the focus on his-month-old clinic comes as 28 states skur yo to support a tough new oversight after n the aftermath of a doctor who ran a philadelphia clinic described as the house of horrors. no debate is more heated than in texas when a final debate is held and requires clinics to meet higher standards of care, a condition pro-life says will save lives but pro-choice says will increase costs and ultimately risks. >> for the poor, you're up a creek without a paddle and you can go to the back alley where the coat hang er er is used.

>> a woman had her bowels pierced with a late-term aborti abortion. >> doug, thank you. taking your money away from you so someone can pretend to be a cow. really. that's late err on "the grapevine." up next, another secret surveillance system to help the government spy on you. ú0

the government's ability and willingness to spy on you is even more so in the last few weeks. >> a new nsa document published by the "washington post" suggests there are two data collection stream, p.r.i.s.m. and a second program callestrea

datas. analysts should use both pots of so-called upstream and downstream data to to their work. given the avalanche of nsa documents in a letter to the government watch dolgs that oversees privacy and civil liberties for the public they say the ichb tell jens community's interpretation of the law that allows data collection appear too broad and congress requires more canvassed testimony from intelligence chiefs. >> we say that they're custodians of intelligence but not owners and that they need to share much more of that information with us. >> asked if it was acceptable that the nation's top person james clapper, the house speaker sate it was not his call. >> well, i have confidence in our chairman to hold their

witnesses accountable. and in this case, i think rogers and the intelligence committee are fully capable of holding their witnesses accountable for their testimony. >> edward snowden is believed to be nearing his third week in a moscow trance ports zone. they said in a statement today they're pleased an air force review found no error on their part. they learn thad the head of the intelligence agency michael flynn is traveling to moscow as early as this weekend. he emphasized the scheduling has nothing to do with snowden. egypt's muslim brotherhood is vowing to maintain the ousting of morsi. but the big question is will there be renewed violence? >> reporter: outranled and angry.

supporters of former egyptian president mohamed morsi resist the military coup defying orders to leave. >> we got morsi ousted legitimately and we'll not leave until he's put in his place. the muslim brotherhood has softened its blow a bit. the group is also denouncing attacks on the police and military. meanwhile military president has called for national reconciliation, inviting members of the muslim brotherhood into the transitional government, but with egypt's prosecutor ordering the arrest of hundreds of other islamists and the military cracking down on the muslim

brotherhood, compromise seems unlikely. still it's expected to be announced by sunday night. but who will be part of it remains unclear. perhaps the greatest challenge is egypt.egypt's economic woes need more than money. it needs serious economic and political reform. bret? >> conor powell. thank you. still ahead, new digs for the father of euro country. we'll explain. first, not a new idea, but senators are tossing around what's called the nuclear option. will it blow up in their faces? [ ship horn blows ] no, no, no! stop! humans. one day we're coming up with the theory of relativity, the next... not so much. but that's okay -- you're covered with great ideas like optional better car replacement

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unemployment benefits rose by 16,000 last week, although the level remains constant with steady hiring. unpleasant delays may delay the federal reserve's changing toits policies which actually is good news for the dow street. the dow gained 169. the s&p 500 was up 22. the nasdaq finished ahead, 58. the federal government are reporting its largest monthly surplus in five years. the june books were in the black. one of the reasons, fannie mae and freddie mac paid for the takeover by taxpayers. there is new talk of changing the rules in the u.s. senate. the chief congressional correspondent mike emanuel thinks it's the other way

around. >> reporter: it changes senate rule with a sim pal pa jort. then presidential nominations would no longer be subject to a filibuster and not require 60 votes. >> the senate needs to change from constant, constant gridlock. the first step is to stop blocking the nominee ts. >> this nuclear option is ultimately a sample of the arrogance of power. it is a fundamental power grab by the majority party. >> they say changing the rules now would be very short-sighted. >> senate democrats are getting ready to do perm nernlt damage to this body to confirm three unconstitutionally appointed nominees by a simple majority vote. >> reporter: those nominees are for the national labor relations

board or nlrb. five of those are occupied. a federal judge rules that president obama naming three during recess was unconstitutional. he's also faced pressure from some of his rank and file such as new mexico's tom udall. >> now what's happened is we find ourselves in a situation of the tierney of minoritminority. republicans say going nuclear would be an overreaction. >> the senate is an institution that's designed to be deliver rahhive and work in a slow way and allowing the minority rights to be represented. what they're essentially doing is bowing to the demands on the outside groups to change the rules by breaking the rules.

>> reporter: while some senior democrats have said they're uncomfortable with this move, they can still go nuclear. bret? >> mike, thanks. an emerging deal to lower interest rays on student loans hit a major obstacle this afternoon after lawmakers were told it carried a $22 price tag over the next decade. the bile liegs try to bring the cost down. over in the house lawmakers have approve add paired down version of the massive farm bill that was defeated last month. the move outraged democrats today. now the farm bill heads to a conference committee to merge it with the senate passed vergts. next in "the grapevine," forget yellowstone or the grand canyon. what about going to a national park on the moochblt what skpaktly really have to do with

selling obama care? we'll explain that too. i didn't want nicotine to give up nicotine. [ male announcer ] along with support, chantix (varenicline) is proven to help people quit smoking. [ mike ] when i was taking the chantix, it reduced the urge to smoke. [ malennouncer ] some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. if you notice any of these, stop taking chantix and call your doctor right away. tell your doctor about any history of depression or other mental health problems, which could get worse while taking chantix. don't take chantix if you've had a serious allergic or skin reaction to it. if you develop these, stop taking chantix and see your doctor right away as some can be life-threatening. tell your doctor if you have a history of heart or blood vessel problems, or if you develop new or worse symptoms. get medical help right away if y have symptoms of a heart attack or stroke. use caution when driving or operating machinery. common side effects include nausea, trouble sleeping and unusual dreams. it feels wonderful. i don't smoke. i don't smoke. [ male announcer ] ask your doctor if chantix is right for you.

from a political ""grapevine."" congresswoman donna edwards and johnson have chosen the apollo sites as the grounds for the taxpayer endeavor. a letter appearing in "the

baltimore sun" in edwards' home state of maryland reads in part, quote, this is why our country is going in the toilet. our taxpayers cannot make ends meet with all the waste in washington. you'll recall in january 2012 if newt gingrich was elected he'd establish a moon gallery by 2020. we reached out for dmecomment. we have not heard back. you might be interested to know a lot of the funding going for sanitizing is being spent on sunscreen, airplanes, and port-a-potties. in connecticut it has workers handing out swag, sunscreen and frisbees to get the message out. and they've hiring a plaechblt oregon plans to use messages on

coffee cups to spread the word. washington state is looking at putting out ads at iphone charging stations and on the side of port-a-potties. and finally, a 3/4 of a million taxpayer dollar gambit going to let people know how it feels to be a could. cow. they awarded stanford university $350,000 to find out whether people ate less beef after they walked through the cow's graze. simulating what the cow might see on their way to slaughter. then researchers looked at the meet meat consumption that following week. the results are not in yet. it could change human behavior and cut down on the carbon. critics say -- well, you can

guess what the critics say. >> they have become commonplace in recent decades. tonight national correspondent steve centanni tells us more. >> these books were owned by or first president and they'll be part of a new multi-million-dollar facility. 214 years after his death, george washington is getting his own presidential library. >> no american president deserves the honor of a presidential library more than our first chief executive, nor is there a better story to tell. >> reporter: the fred w. smith library will open in september. first integrated centralized research center for washington scholars. it isn't quite finished yet but computer animation shows it will be a well appointed dignified

place to study and will lead new insight into the president who gave so much information. >> while there have been tens of thousands of books published, there are still things to learn. >> the library's on the grounds of mt. vernon. it's a $47 million 45,000-square-foot building. unlike other presidential libraries, this one is built entirely with private donations and no tax dollars. there's only one problem. unless you're writing an article, book, or decembereration about george washington, you can't get in. it's only open to researches and scholars. there are public plans for the future, but details have not been found.

bret? passengers were still begging for help from emergency officials long after the plane went down. we're getting a first taste of the desperation of some 911 phone calls by those who survived. >> we've been on the ground, i don't know, 20 minutes, half hour, there are people lying on the articulate mack. we're trying to keep her alive. >> a city fieshl official explains ambulances dispatched immediately, were sent to a nearby staging area and the passengers who called may not have been able to see them. quebec's premier got a firsthand look at the worst railway disaster in 151 years. paul got a chance to view it from far away. bodies. the head of the train's u.s. based train company met with major and other residents in the

town. they're blaming the engineer for failing to set the brakes properly. a routine senate hearing becomes anything but routine from benghazi. we get reaction from the all-stars when we come back. ♪

when you experience something great, you want to share it. with everyone. that's why more customers recommend verizon, america's largest 4g lte network. the head of the train's u.s. all-stars when we come back.

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based train company met with september 14th e-mail. it changes the talking points, quote, don't resolve all of my issues or those of my building leadership. can you just tell me who that building leadership was? who you're referring to there? >> with regard to building leadership, i was concerned that all of my bosses at the policy level would -- needed to look at these to see if they agreed with me. >> were there particular people that were concerned about the changes that weren't being made? >> our regular procedure when i a spokesperson could not resolve an issue at my level would send my concerns up to the deputies chiefs of staff for policy. that's what i did that night.

i did not consult with anybody else. >> that person was? >> at the time, jake sullivan. >> victoria nuland, state department's spokesman trying to be confirmed. spending a lot of time talking about the infamous talking points. you may remember from nuland six days after the benghazi attack. >> simply on the basis of what ambassador rice has publicly disclosed, does the united states government regard what happened in benghazi as an act of terror? >> again, i'm not going to put labels on this until we have a complete investigation, okay? >> so you don't recall this a complete -- >> i don't think we know enough. >> let's bring in our panel. napolitano, and syndicated colu columnist. okay, judge.

you saw some of the questions today. thoughts. >> i watched almost all of it and i was very, very frustrated. in my former forum, she would have had to give precise answers to the questions. i think the senate is incapable because part of it is because they're not part and parcel cross-examine nevers and because she didn't want to give truthful answers and i don't think the legislative process will ever get the truth out of this administration. how will they get the truth? the next president's justy department. this is deeply and profoundly frustrating. >> one question she did answer fairly clearly was this from senator rubio. >> did you have any conversations with secretary clinton about the talking points or the specific concerns that

you raised? >> at no point that evening or subsequently did i talk about the talking points with secretary clinton. >> okay. and the clinton people had to be happy with that answer. >> yeah. i mean i don't think the republicans got what they wanted out of her today. i thought she came across as pretty professional, even in the clip of james rosen questioning her, it's a bet befrter to notice. >> she had done ottawa two days before that. >> she did. she's a career person, not a political question. the real scandal is why there wasn't not security, not the talking point back and forth. >> charles, in the vacuum of this as we're getting testimony today, there's a new book coming out in the fall. several new books coming out in the fall. several of them. one of them called "under fire:

the untold story." james rosen reported the earlier this week. just some quotes that put this in context from people that were there. the enemy attacking, the so-called members. they were not a rag tagg force force split into small groups which advanced throughout the compound methodically. they employed military style hand signals to direct their progression toward the objectives. they had been given precise orders and impeccable intelligence, they seemed to know when, where, and how to get it and how toiquette off the ds agents as well as the local guard force and the february 127 martyrs brigade militiamen on duey that night but one thing was absolutely certain in the minds of each and every one of the agents in those early and crucially decisive manners that the u.s. ambassador, was the

ultimate target of the attack. they knew they had to secure him and get him out of the kill zone. that's an excerpt of the book coming out this fall. >> it was radically untrue in what they were peddling on the sunday shows. the mainstream press is trying to wave away the details by dismissing it as a turf wall between cia and state. it's about territory. there's never an issue of principle at stake. here what was at stake with the state arguing the cia is who was responsible for a real scandal, the dereliction in not providing support, ignoring the warnings, and dog nothing during the hours

of the attack. so it wasn't an argument between the departments over simply authority. it was over who was involved in the scandal, who should have taken the hit. and in the end, the one do sigs all agreed on was to try to an solve the obama agency of any blame by pretending that it was not a terror attack and it was the fault of a nobody, a christian coptic who did a film and is in jail because of this event it's important to point out that the agents talking for this book, the authors, were the same agents interviewed by the fbi just a few days after the attack. the fbi had the knowledge three days after from interviews in germany and one would assume that some element of the government had that as well. i want to play one more sound

bite from that, judge, and get a quick reaction. senator paul with some questions and what he really thinks is behind all this. >> what was the purpose of the cia and acts in benghazi? >> senator, i would be delighted to talk to you about the relationship between the state department and the cia in a separate setting if that's helpful. >> there's many of us who believe it had to do with an arms strength going out of the cia annex and that perhaps people were unhappy about arms being taken from one group to another and sent to another that may have incited the rioting and may have incited the terrorist attack, but the problem is we can't ever get to the truth because we'd just say, oh, it's secret. >> thoughts? >> he's right. he's right that people believe it. it's right we'll never get to the bottom of it because of the government secrecy laws.

it's very upsetting to those of us upset by the laws and the duties. >> maybe answer some of his questions. >> whatever she tells him, he can't repeat to the public, so what's the good of his knowing it? >> it gives you oversight. >> at some point. >> you have to try. when a country has secreted, somebody has to look at it and decide if it's okay and somebody else has to keep it secret. otherwise a country has no secret. next up, harry reid and the senate's nuclear option. ♪ ♪ chances are, you're not made of money, so don't overpay for boat insurance.

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>> a disturbing trend, mr. president, when the republicans are willing to

block executive branch nominees even if they have no objection about the qualification of the nominee. they don't like the law. they don't like the agency. instead of blocking qualified nominees to circumvent the legislative process, force wholesale changes to law and restructure executive branch departments. >> it's note worthy that all of the people he is complaining about all got confirmed. so what he is really saying here is he doesn't want any debate at all in connection with with presidential appointments. just sit down and shut up and rubber stamp everything, everyone the president sends up here. >> bret: well, that's the back and forth on the nuke lawyer option. the senate majority leader saying he has the votes to change the senate rules with regard to the executive nominees. the executive nominees, not judicial nominees, not policy, but executive nominees. we're back with the panel. judge, you know, this essentially means that instead of getting 600 votes for what's called cloture to move on, move

forward, they would only need 51. a clear majority. they would change the rules of the senate. what about this? >> well, i think that harry reid would roux the day that would happen some point he will be, the democrats will be in the minority and the filibuster is a tool of the minority to prevent the majority from steam rolling. it slows down the government from my world view. it means fewer nominees, fewer laws passed. that's a good thing. i think that it's terrible that they want to get rid of the filibuster rule. i don't know that he has the votes to do it. i have been reading statements from democrats this afternoon that they agree with me. that they want to have that tool available to them when they are in the minority. but he will go down as mitch mcconnell said as the worst majority leader in modern times if he takes this tool away from the minority. >> bret: he says he has the votes. we will see if he does or not. democrats, meanwhile, marah argue that the president now in his fifth year really should have the people he wants in his

team. >> right. this is what i would call a mini nuclear option. as you pointed out, we are not talking about judges. we are not talking about the ability to filibuster laws. they still can do that. this is just about once you have an agency that is created the president should have the ability to appoint the person he wants as the head of it. i think there is some logic to that. you know, if you don't like the agency, pass a law to get rid of it. but, once it's there, you know, you should be able to -- he should be able to put the person he wants in place. now, what effect it will have if this actually happens is really unknowable. is this the beginning of going down the slippery slope of getting rid of the filibuster completely? will the next time the republicans are in the majority, will they try to get rid of minority powers even more? you know, the senate used to operate on a lot of consensus and consent and it just doesn't anymore. >> you know, we could, charles, run the litany of democratic sound by thes where senator reid says it's the fabric of this institution we call the senate and all of that from

years' past. we won't do that now. i will say that republicans say that this is manufactured because of all the cloture votes they have moved forward, only a few have resulted in the nominees actually being polled, like not getting through. once they do the cloture, eventually when the vote happens, it's overwhelming that they do -- the president does get his guy in or woman in. >> have a practical effect on this administration. but if harry reid wants to drop the big one, go ahead, harry. i think the judge is absolutely right. they will roux the day. one day going to be in office and they are going to use. this as you said, this is a a classic study in hypocrisy because all the arguments were made about seven, eight years ago in the senate and the players are reversed. the jerseys are of a different color. it's the same argument. i could live with it either way. i think as marah says, this is not all out nuclear war. tactical nuclear war only because it only applies to

presidential -- i think it's kind of reasonable. but one day when the republicans use it on the democrats and they reverse all of their arguments, it will be remembered who did it and i think they have no one to blame except themselves. >> bret: but do you agree, judge, what marah said in the fifth year in the second term the president should be able to get the people he wants in the positions he wants and the people can vote at the end of that term whether it worked or didn't work? >> i do agree. but i also agree that there are intentionally institutional obstacles to the president getting everything he wants because they -- the congress is a coequal branch. in this case it's just the senate because that's what the constitution provides. and to steam roll over that, to destroy tha tradition in one fell swoop is going to have consequences that they can't anticipate. >> bret: that is it for the panel. stay tuned to see a specific warning about heat. members of the american postal worker's union

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>> bret: finally tonight, it's been a hot summer many places throughout the u.s. death valley, california, for example, hit 120-something degrees the other day. with all the high temps come the traditional heat warnings, drink plenty of water, get some shade, don't overdo it. and you can imagine if it's hot here subsahara africa on a presidential trip, that would be really hot. >> be on the lookout for odd or disoriented behavior. ♪ >> stay safe, america. >> bret: that was president bush last week. i have never seen the turn around move. i have seen the other moves. not the turn around.

[ laughter ] >> bret: thanks for inviting us into your home tonight. that's it for "special report" fair balanced and unafraid. >> just when i thought this case couldn't get any more bizarre. >> shepard: it was only getting started. closing arguments and a key ruling in the murder trial of george zimmerman. the jury gets a new option. the defense gets frustrated and the judge gets fed up. plus, new, from the san francisco jet crash, in the early going, you where were the first responders 911 emergency, what are you reporting. >> there has been a crash at the airport. there are people injured on the tarmac. >> we are at the san francisco airport. our plane just crashed. rab out of the airplane. >> shepard: some passengers pleaded for ambulances. >> there are a bunch of people who still need he